MINIMUM WAGE IN JAKARTA IS NOW RM1,500 PER MONTH
city administration decision Wed to set provincial minimum wage at Rp 3.6m (US$265).
8% higher than last year’s minimum wage of Rp 3.3m
Workers will enjoy the raise, while businessmen will not bear heavy burden
Labor unions demanded minimum wage of Rp 3.9m
businesses asked for Rp 3.6 million.
My comments : Better keep an eye on this figure. Indonesia is enjoying solid GDP growth of 5% for the past two years. Their growth is more real. There is no more oil money to burn.
All their wages are moving up slowly but surely. The Minimum Wage of RM1,500 in the city of Jakarta is a strong indicator of their wage trends.
In Malaysia, wages are generally headed downward. University graduates are now willing to work as lowly paid toilet cleaners. This means toilet cleaners in Malaysia can now be university trained.
Millions of foreign workers now occupy millions of jobs in Malaysia. They exert stronger downward pressure on wages.
Indonesian workers in Malaysia may not be migrating back to Indonesia tomorrow. But certainly as wages go up in Indonesia there will be less new Indons coming over to Malaysia.
For the Indons (and Banglas, Nepalis etc) there will be a “levelling out” between the wages in Indonesia and Malaysia.
A point in time will come where they have to decide if they have more jobs and better wages here or back in Indonesia, Bangladesh etc.
What I am trying to say folks is that pretty soon Zimbabwe will also be passing us by.